Galway restauranteur JP McMahon says minimum wage increase will increase costs


Famous Galway Restauranteur JP McMahon has said that the increase in the minimum wage coming in next year will affect prices.

It was announced in Budget 2024 that from January, the minimum wage for people aged 20 and over will increase by €1.40.

That will bring the minimum wage for them up to €12.70 per hour, while remaining at €11.30 per hour below 20 years old.

McMahon stated on X, formerly known as twitter, that he hopes people understand that this will result in costs going up.

“This is not a judgement on the minimum wage but a reality that the only way a restaurant makes money is selling food and wine.”

“Perhaps people can stop posting their receipts from Spain now though I presume when they get charged €4.50+ for a latte they may realize the connection between wages and food in cafes and restaurants.”

“It’s incredibly difficult to run a restaurant in Ireland these days due to associated costs: rent, wages, vat, tax, insurance, energy, etc.”

Mr McMahon also said that he has no problem paying staff, but he gets annoyed with people giving out about restaurants and cafés ‘ripping people off’.

“We seem to want it both ways in Ireland. High wages and cheap food,” the restauranteur added.

Speaking on Newstalk, he also cautioned that the increase in costs could see restaurants turning to lower quality food.